A mortgage is made up of two ingredients: the capital which is the amount of money you borrow from your lender to buy your home, and the interest the lender charges on the capital until you pay it back. Your lender has many different types of mortgage available, using various methods of repaying the capital and the interest.
And then you also have various options depending on how you want the interest on the loan to be charged. This is where the fixed rates, discounts and trackers come in.
Confused? Actually it’s very straightforward - just scroll down the options here and all will be revealed.
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With a variable-rate mortgage, the rate of interest you pay changes when the lender reduces or increases its lending rate - known as the standard variable rate. |
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Traditionally if you wanted a mortgage you just went to your local building society. But times have changed and mortgages are also available from banks, insurance companies, direct lenders and specialist mortgage providers. |
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